Donor-Advised Funds

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If your donor-advised fund is held by Fidelity Charitable, Schwab Charitable, or BNY Mellon, DAF Direct streamlines the process for you. Click here to make your gift through DAF Direct.

If your donor-advised fund is held elsewhere, contact that institution to start the process.

Of course, we’re always happy to answer any questions you might have, so please contact our Development and Communications Office if we can help. (616.459.4681)

Typically, the IRS permits any gift through a donor-advised fund, with a couple of exceptions. A donor cannot receive something (such as a meal at a fundraising luncheon) in exchange for the gift. (However, a donor can pay for the meal or item separately and then make a gift through their donor-advised fund.) Additionally, some gifts from donor-advised funds cannot be used to satisfy a donor’s outstanding obligation or pledge to the recipient charity. The institution that holds your DAF may have other guidelines, too.

Want To Know More?

Information Via DAF Direct

What is a donor-advised fund?
A donor-advised fund (DAF) is a giving program that allows you to easily combine the most favorable tax benefits with the flexibility to support your favorite charities. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals.

How does it work?
• Establish your DAF by making an irrevocable, tax-deductible donation to an institution (e.g., community foundation, Fidelity Charitable, Schwab Charitable, BNY Mellon, etc.) that sponsors a DAF program.
• Advise the investment allocation of the donated assets (any investment growth is tax-free).
• Recommend grants to qualified public charities of your choice

What are the main advantages of a donor-advised fund?
Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts.
Flexibility – The timing of—Contributions are tax-deductible, and any investment growth in the DAF is tax-free. It is also easy to donate long-term your tax deduction can be separate from your charitable decision-making.
Tax-efficiency – Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy.
No start-up costs. – There is no cost to establish a donor-advised fund. However, there are often minimum initial charitable contributions to establish the DAF (typically $5,000 or more). However, minimum initial charitable contributions often exist. **
No transaction fees. – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.**
Privacy, if desired. – Donors may choose to remain anonymous to the grant recipient.

What is the process for starting to give through a donor-advised fund?
1) An individual or entity makes an irrevocable contribution to a sponsoring institution (e.g., community foundation, Fidelity Charitable, Schwab Charitable, BNY Mellon, etc.) to establish a donor-advised fund. This person becomes a donor advisor.
2) The sponsoring institution allocates the charitable contribution to the particular donor-advisor’s DAF. The donor-advisor can name the DAF (ex: The John Doe Fund).
3) The donor-advisor retains advisory privileges over the investment allocation for the DAF. Since the assets in the DAF belong to the sponsoring institution, any investment growth is tax-free. The investment options available vary by sponsoring institution.
4) The donor-advisor has advisory privileges over the disbursements made from the DAF. The disbursements are recommended by the donor-advisor but must meet the grant-making criteria of the sponsoring institution. Typically, disbursements may only be recommended to IRS-qualified public charities exclusively for charitable purposes. Additionally, the donor may not receive any more than incidental benefits due to the disbursement.
5) The grant is made to the qualified charitable organization once the sponsoring institution approves the recommended disbursement.

** Sponsoring institutions generally assess an administrative fee on the assets in a DAF. These fees vary.